Trade war United States vs. China: BMW would be severely affected

The threat of a trade war between the US and China would also have an impact on the BMW felt. Just like other car manufacturers, the BMW Group does not produce all the vehicles for the respective individual markets locally, which is why high tariffs for the Import and Export of vehicles or vehicle Parts would have a direct impact on the Profit of the company. Particularly, the majority would be affected here in the USA-built BMW X models, the Import to China will be significantly more expensive.

According to the latest analysis from IHS, BMW will export this year alone, around 89,000 in the USA-built vehicles to China, in the previous year, there were just over 100,000 units. Competitor to the Mercedes would be affected in the case of an Export by expected to be around 65,000 vehicles. The China-based industry would probably be less affected by corresponding duties, for Export China-built vehicles in the direction of the United States takes place in comparison to the reverse direction to a significantly smaller extent.

Some relief could provide the BMW Group is the fact that the production of X-models is taking place step by step in other countries. Since yesterday, the BMW X3 G01 is built also in the South African Rosslyn plant, approximately 76,000 units will there be per year. It should actually come to a trade war between the US and China, could be built in China’s planned X3, at least partially, also in South Africa.

A further step towards independence from potential conflicts with the planned production of the BMW X3 in China itself. In this respect, in the framework of the annual press conference officially announced, the current Generation of G01 as of mid-2018 is also directly in China to build want. Similar measures for the so far exclusively in Spartanburg-built models, X4, X5 and X6, as well as the upcoming X7, but they can not be implemented in the short term, could be in the event of a prolonged conflict, but the Option.

(Sources: FAZ, Handelsblatt)

[resources :]
by :